Sampath Bank achieves robust financial performance in 2024

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Profit Before Tax up 57% to Rs. 46.7 b
Profit After Tax up 59.4% to Rs. 27.3 b
Group PBT up 57.6% to Rs. 49.2 b; PAT by 60.1% to Rs. 28.7 b
Declares first and final cash dividend of Rs. 9.35 per share
Return on Equity improves to 17.74% from 12.65% in 2023
Net interest income up 10.7%
Loan book expands by Rs. 82.6 b
Deposit portfolio reaches Rs. 1.24 t

Managing Director Ayodhya Iddawela Perera

Chairman Harsha Amarasekera

Sampath Bank said yesterday it achieved a robust financial performance in 2024, demonstrating significant growth and resilience amidst Sri Lanka’s economic recovery.

Total interest income for the year was Rs. 183 billion, a 10% decrease from 2023, primarily due to the lower Average Weighted Prime Lending Rate (AWPLR) and reduced interest rates on Government securities. Interest expenses declined by 21.4% to Rs. 103 billion, attributed to effective deposit repricing and management of Current and Savings Account (CASA) levels. This strategic approach led to a 10.7% increase in net interest income, totalling Rs. 80 billion.

The Net Interest Margin (NIM) slightly contracted by 26 basis points, from 5.16% in December 2023 to 4.90% at the end of 2024, due to reduced yields on interest-earning assets amid declining market interest rates.

In December 2024, the Government of Sri Lanka finalised the restructuring of Sri Lanka International Sovereign Bonds (SLISBs). Sampath Bank opted for the ‘Local Option,’ receiving 30% of its exposure in LKR bonds and accepting a 10% nominal haircut on the remaining 70% of the SLISBs. This resulted in a reversal of previously booked impairment of Rs. 15.8 billion, an additional loss of Rs. 8.4 billion due to the restructuring, and a net after-tax impact of Rs. 2.6 billion on the bottom line for the year.

Net fee and commission income stood at Rs. 17.5 billion, a 7.3% decline, mainly due to reduced trade-related income from lower import commission rates and the appreciation of the Sri Lankan Rupee. However, growth in fees from credit services, electronic transactions, and card operations partially offset this decline.

Operating expenses increased by 21.2% compared to 2023, primarily due to a 26.7% rise in personnel costs from annual salary increments. The cost-to-income ratio rose to 45.0% from 35.7% in the previous year. The total tax charge for the year was Rs. 32.6 billion, with an effective tax rate of 54.4%.

Total assets grew by 15.3% to Rs. 1.8 trillion, driven by increased investments in Government debt securities and an expanded loan portfolio. Gross loans increased by Rs. 87.3 billion to Rs. 964.6 billion, primarily due to a Rs. 82.6 billion rise in Rupee-denominated loans. Total liabilities rose by 15.6% to Rs. 1.6 trillion, with deposits increasing by Rs. 204.7 billion to Rs. 1,469.2 billion. The bank maintained a stable CASA ratio of 34.0% at year-end 2024.

Sampath Bank’s capital and liquidity positions remain robust, with CET 1, Tier 1, and Total Capital ratios at 16.75%, 16.75%, and 19.38%, respectively, as of 31 December 2024. Liquidity levels are well above regulatory requirements, with an all-currency Liquidity Coverage Ratio of 307.4% and a Net Stable Funding Ratio of 198.7%.

Sampath Bank said its strong financial performance in 2024 reflects its strategic focus on innovation, customer-centric solutions, and prudent financial management, positioning the bank well for continued growth in the evolving economic landscape.

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